HSBC has succeeded in facilitating short-term sales transactions by offshore investors through a Qualified Foreign Institutional Investor (QFII) scheme. Today, it is the first time for offshore investors to participate in margin lending and short selling (MF & SS) trading on the Shanghai and Shenzhen Stock Exchanges.
The transaction took place on December 29, and the market’s first HSBC became effective as a custodian under the new QFII rules that came into effect on November 1. Other market-first transactions promoted by HSBC were the first securities lending transactions and the first onshore private fund investments by offshore investors in mainland China via the QFII scheme.
Stephen Pemberton, Global Head of Merchandise, Banking and Broker-Dealers at HSBC Securities Services, said: “Since the deployment of the new QFII rules, we have been working with clients and market participants to prepare for the opportunities they create. Designed robust and streamlined MF & SS solutions for clients and normalized securities trading. We made the data available and made it possible to re-deliver the market’s first service.
“MF & SS is an important securities trading mechanism that helps to stimulate trading and facilitate market price discovery. To support further scale and growth since MF & SS was launched in China’s A-share market. It has evolved. With the launch of the MF & SS business through QFII / RQFII, offshore investors will be able to diversify their trading strategies and further facilitate inbound investment flows into the Chinese stock market.
HSBC is the leading custody service provider for QFII and RMB Qualified Foreign Institutional Investors (RQFII) in China, covering 15 markets. HSBC has been actively involved in scheme reforms and upgrades since its inception in 2003. HSBC also ranks high in the number of foreign institutional investors providing services and the assets under the control of foreign institutional investors in the interbank bond market in China. Among all payment agent banks.
HSBC Promotes Margin Lending and Short-Term Sales Transactions Under China’s QFII Scheme
https://www.theasianbanker.com/press-releases/hsbc-facilitates-market-first-mf-and-ss-transactions-under-qfii-scheme HSBC Promotes Margin Lending and Short-Term Sales Transactions Under China’s QFII Scheme